PUBLIC PRIVATE PARTNERSHIP

The Victorian Desalination Project is being built and operated as a Public Private Partnership (PPP) between the Victorian Government and AquaSure  (see About Us for more information on AquaSure).

AquaSure is paid under a fixed price contract to build and operate the plant for 30 years before handing it back to the Government in full working condition.

AquaSure does not own the water. It will desalinate seawater for delivery to Melbourne Water and other authorities in quantities specified each year by the Government.

The Victorian Desalination Project is one the largest PPP projects undertaken worldwide in recent years and was a significant milestone for PPPs given the difficult economic conditions at the time of its conception, due to the Global Financial Crisis as well as the scale and complexity of the project.

The syndication requirement was completed in less than three months and was more than 50 per cent oversubscribed reflecting the strong interest in the project. The total net present cost of building, financing and operating the plant over 30 years is $5.7 billion.

The successful financing of the project in one of the toughest financial markets in history and the innovative structure of the PPP received global recognition when the project was named Desalination Deal of the Year at the prestigious Global Water Awards in Paris in April 2010.

The Victorian Desalination Project has now received 12 major awards in relation to the financing of the project, including the Financial Excellence Award at the Infrastructure Partnerships Australia 2010 National Infrastructure Awards.